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Suppose you are the manager of a firm. The accounting department has provided cost estimates, and the sales department sales estimates, on a new product.
Suppose you are the manager of a firm. The accounting department has provided cost estimates, and the sales department sales estimates, on a new product. Analyze the data they give you shown below, determine what it will take to break even, and decide whether to go ahead with production of the new product.
Cost is and revenue is no more than units can be sold.
The breakeven quantity is units, which is than the number of units that can be sold, so the firm produce the product because it would money.
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